The one thing that rich people buy that the poor and middle class don't

9:58:00 PM

The one thing that rich people buy-that the poor and middle class don't

-There might seem to be a lot of differences between the
rich, the poor, and the middle class, but what if I told you that there was only one idea that the
rich use that the other two do not, that makes all the difference?

The one thing that rich people buy that the poor and middle class don't

It's so simple but so important that when I finally
understood it, it changed my life forever.

I'm going to open your eyes and show you exactly what I
mean, and you'll see why the rich get richer, the poor get poorer,

and the middle class are getting squeezed out.

It's not about what they do, but what they BUY.

I want to make this as simple as I can, but to start, I want
to give you a few definitions of four important words. When I first heard these, I thought I knew
them but it turns out I was wrong.

Assets Generate Incomes - Liabilities Generate Expenses

The words are:

Income (money you bring in)

Expenses (money you spend)

These two words are used by the rich, poor, and middle class,
but it's these next two that I thought I knew, but blew my mind:

Liabilities (something that costs you)

Assets (something that pays you)

Before, I thought an asswet was something you own, like a
house, a car, or something expensive.

But the rich have different definition of Assets, and this
is the one we'll be working with:

"Something that pays you"

Usually, people call their house an asset, and if you ask an
accountant, they'll tell you it is, but if you use these definitions,

it can also be a liability, right?

A house you own but live in COSTS you money, so it's a
liability.

BUT, a house that you rent to other people and make money
from is an asset.

So, a quick review:

Income: money you make

Expenses: money you spend

Liability: costs you money

Assets: pays you money

So, I mentioned that there was a simple idea that seperated
the rich, poor and middle class, and it's all wrapped up in what they do with their money
when they get paid.

Basic Account Relationships

The poor take their money and buy... DOODADS.. They buy
shoes, and ringtones,

and mountain dew, and chotchkes, and blu-rays, and clothes
and TVs and games and a bunch of STUFF that they found for

cheap-maybe ata a flea market, garage sale, dollar store, or
Walmart.

Their houses are cluttered with junk, but it was al
"just a buck!" or "inexpensive thingys". Their cars are
full of junk, garages, etc.

They take their money from their income, and spend it
through their EXPENSES each month. Right out the door, as fast as it came in.

It's easy to fall into this trap because everywhere we look
there are things to buy!

It makes the world go 'round, but the problem is that after
years of working, they hav enothing to show for it because all the "little
thingys" add up.

I was born with this idea, and for a long time, that's what
I thought you should do with money- Spend it!

I had heard of "saving", but even then, I was
saving it to buy something "BIG".

The problem is that the poor never let their money create
more money.

This isn't a character flaw, and it's not "wrong",
it's just that it keeps the poor on a terrible cycle that is very hard to
escape from. You have to be willing to learn and challenge.

I was willing, and I learned that creating wealth is not a
big secret...

It's a Recipe.

The only reason someone doesn't create wealth is because
they don't know the recipe, don't want to know the recipe, or never use the
recipe.

Dollar $ Sign

I have never baked cupcakes because I never learned, never
had the recipe, and never tried to bake them.

It's not enough to get the recipe, you actually have to
COOK!

-So let's talk about the middle class now.

Some people in the middle class think they are rich, because
they might make a good salary at a good job.

Maybe they make a six figure income, but what they buy with
that money is what keeps them stuck in the middle class.

Well, the middle class buy things like big houses, nice
cars, vacations, and pay for them on credit thaty they pay for every month.

Each month it's a new thing, but it just adds a little bit
to the monthly bills or expenses.

For example, let's say someone in the middle class makes
$15,000

They pay their monthly expenses like the mortgage (or rent
on a fancy apartment) and food and lifestyle with $7000, but then a car

costs $7000 down and a few hundred a month, then a watch
that costs a little bit per month, a vacation that costs a little bit per month,
etc. etc.

Until they are living on the credit card that they pay a
part of every month.

After a while, their monthly debts cath up to their monthly
income, and then they are trapped with what I've heard called "Golden
Shackles".

They keep buying LIABILITIES that cost them every month, and
then they are trapped by the very things they bought to make them happy.

Now, they are stressed out because they HAVE to make more
money next year for the kids schools, or the next vacation, or whatever. And
they put THOSE liabilities on the credit card.

The poor and the middle class get trapped because they also
get into a situation where the only way they make money is by trading their
TIME for it.

Either their body or their knowledge get traded for the
money they make, and there are only 24 hours in a day.

Whether you make $10 an hour, or $1000 an hour, you still
have to trade that hour for it.

A fast food worker still has to serve food, a dentist still
has to see patients.

This is when the 2nd job comes into play.

It's a short-term band-aid to a long-term problem, because
there are only so many hours in the day.

Often these people end up being workaholics, waking up just
to go to work and pay bills.

And before I continue, I want you to know that you can make
a lot of money, but still be a poor person because of how you spend it.

But here's the critical difference for the wealthy.

Instead of buying stuff and liabilities with their money,
the wealthy... Buy ASSETS.

ASSETS (something that pays you)

This blew my mind when I heard it because I had no idea that
you could even do that... BUY something that PAYS YOU?

It made no sense at first, so I chose to keep learning.

Here's what I found out:

The wealthy buy assets. These assets pay them money, which
they use to buy more assets which makes them MORE money.

The ASSETS make them money instead of their TIME.

Here are a couple of assets that you might have heard of:

1. Stocks

2. Bonds

3. Real Estate

Now when I heard this, I said "Oh! Investing- of course
they buy 'investments'- duh!"

And the person who taught me this asked me "What is an
investment?"

and I said "Well, it's something you buy, and then you
hope it goes up in value, and then you sell it for more money...right?"

And he said... NO.

That's TRADING. That's GAMBLING. And that's what the poor
and middle class think investing is. They are wrong.

Then he asked me- would you like to know how RICH people
define investing?

And I said YES!

And he said- "I already told you:

They BUY ASSETS".

Instead of buying something that you HOPE goes up in value
after time goes by, the rich buy ASSETS that pay them NOW.

You see, they buy stocks that pay a dividend- it pay them
money every month.

They buy bonds that pay them every month

They buy real estate that PAYS them every month.

Like I said before, not a house you live in, hoping it goes
up in value in ten years,

but a house that you RENT OUT NOW to people who pay you
every month.

But there were two other kinds of assets that I want to talk
about now:

EDUCATION can be kind of asset if you learn how to do
something and you can use it to make more money.

There's an old saying "If you think education is
expensive you should see how expensive ignorance is" but where the rich really make the difference is when they
buy or create an asset that is a BUSINESS.

Especially a business that can create passive income.

When you can build up a business to where it pays you even
after you stop working it, then you have a true asset.

It's what the real wealthy people do, and it doesn't have to
be some "multi-national corporation".

A great example of this kind of business is a vending
machine.

Vending Machine

If you have a vending machine in a place with a lot of
traffic, people buy the candy, and you just collect the money.

Sure, you might pay for the candy, and for someone to
restock it, but all you do is get the machine, and get the money, and then buy another machine. And then
get the money, and buy another machine. Over and Over.

Warren buffet did this with old pinball machines... now he's
one of the wealthiest people on the planet.

Price is what you pay. Value is what you get. - Warren Buffett

He started with pinball machines, and now he buys big
businesses that pay him monthly.

Same recipe, different ingredients.

Pinball machines as vending machines

If you, (LIKE ME) feel excited now that you've learned this,
then here's where YOU come in.

Years ago, I came across these ideas when I was working a
day job.

I am an software engineer, and you've seen me on internet
now, but back then I was just working to pay the bills.

I got jobs answering phones, temping, whatever, doing things
just for money, so I could pay bills on liabilities and STUFF that I had
bought.

Then someone shared these ideas with me, and I wanted a
change enough that I chose to keep learning.

Now things are entirely different.

I spend my time doing what I want to do, I've been on
adventures, I've written books, I've coded some softwares, and and I decided to
take action when I had the chance to build up a passive income business online.

An online Asset. Kind of an online vending machine (if that
makes sense)

I took some of the money I made from that ASSET, and bought
more assets in the form of education, so I could LEARN MORE and take MORE
action, and build MORE online vending machines.

I started telling people about what I had learned, but I
found that you can't understand any of this stuff unless you're looking for
solution,

you're open to hearing one, and feel excited about the idea.

When I was poor, spending all my money and time on stupid
STUFF, I was open when someone asked me if I wanted to make some more money. I
answered a very hype-filled ad, was willing to research,

take action, and it changed my life forever.

So, on the next page is a passive income business ASSET that
I use to make money with.

Remember:

The poor buy STUFF

The middle class buy LIABILITIES

The wealthy buy ASSETS

Preferably businesses that PAY YOU money then take that
money and buy another asset that produces more mone.

That's the recipe for wealth.

I really hope that you learned a few things from this
article, and you choose to join us now on the next page.

I'm a Software Engineer. I'm passionate at Tech, Educate, Travel, Fashion. This blog is a place where I want to share all the things that I love to you and the things that gives you chances to be a succesful man, and this blog will inspire you to get hands on working online at home! Keep
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Welcome to The Money Life Lover.

I'm Edi - I'm a Software Engineer. I'm passionate at Tech, Education, Travel, Fashion, Entrepreneur, Blogging,. This blog is a place where I want to share all the things that gives you chances to be a successful man, and this blog will inspire you to get hands on working online at home! Keep

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